Case Scenario 3: Bunnywac

question 23

Essay

Case Scenario 3: Bunnywac.
Bunnywac is a global producer and seller of batteries for consumer electronics, and competes primarily by providing battery products equal in performance at a lower price. The worldwide battery industry suffers from issues of overcapacity and commoditization, brand segmentation and proliferation, the growing strength of global retailers, and the low-cost threat of new entrants from Asia. Bunnywac has grown quickly into one of the leading players in the battery industry primary through horizontal acquisitions, and is now counted among the top four companies in North and Latin America. Its presence in Europe and Latin America is negligible. A key factor in Bunnywac's rapid growth is its technology outsourcing arrangement with Mats. Mats is one of Japan's largest technology holding companies and Bunnywac's core battery technology is licensed from Mats. Bunnywac's license with Mats expires soon and it is concerned that Mats will not renew it, or will renew it only for a substantial price premium. Consequently, Bunnywac's CEO is exploring the possibility of developing its core technology in-house.
-(Refer to Case Scenario 3). What aspects of Bunnywac's development of its core battery technology do not fit the notion of strategic behavior that you identified above?

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Definitions:

Withdrawals

The act of taking out cash or other assets from a business by the owner for their personal use.

Capital

Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.

Prepaid Insurance Expense

The portion of insurance premiums that have been paid in advance and are recognized as an asset until the insurance coverage relates to future periods.

Advertising Expense

Costs incurred in promoting products or services to attract sales or increase brand awareness.